Segment Information (Tables)

3 Months Ended

Mar. 31, 2018

Reconciliation of Sales and revenues




Reportable Segments
Three Months Ended March 31
(Millions of dollars)
	2018
	External sales and revenues			Inter- segment sales and revenues		Total sales and revenues		Depreciation and amortization		Segment profit		Segment assets at March 31		Capital expenditures
Construction Industries	$	5,659		$	18	$	5,677	$	89	$	1,117	$	4,961	$	42
Resource Industries	2,208			101		2,309		116		378		6,172		23
Energy & Transportation	4,276			943		5,219		158		874		8,119		162
Machinery, Energy & Transportation	$	12,143		$	1,062	$	13,205	$	363	$	2,369	$	19,252	$	227
Financial Products Segment	793		¹	—		793		203		141		35,332		361
Total	$	12,936		$	1,062	$	13,998	$	566	$	2,510	$	54,584	$	588

	2017
	External sales and revenues			Inter- segment sales and revenues		Total sales and revenues		Depreciation and amortization		Segment profit		Segment assets at December 31		Capital expenditures
Construction Industries	$	4,091		$	9	$	4,100	$	102	$	634	$	4,838	$	21
Resource Industries	1,670			91		1,761		127		160		6,403		21
Energy & Transportation	3,356			780		4,136		158		545		7,564		116
Machinery, Energy & Transportation	$	9,117		$	880	$	9,997	$	387	$	1,339	$	18,805	$	158
Financial Products Segment	760		¹	—		760		208		183		34,893		271
Total	$	9,877		$	880	$	10,757	$	595	$	1,522	$	53,698	$	429

¹ Includes revenues from Machinery, Energy & Transportation of $105 million and $86 million in the first quarter of 2018 and 2017, respectively.

Reconciliation of Sales and revenues:




Reconciliation of Sales and revenues:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidating Adjustments				Consolidated Total
Three Months Ended March 31, 2017
Total external sales and revenues from reportable segments	$	9,117		$	760	$	—			$	9,877
All Other operating segments	37			—		—				37
Other	(24		)	17		(85		)	¹	(92		)
Total sales and revenues	$	9,130		$	777	$	(85	)		$	9,822
¹ Elimination of Financial Products revenues from Machinery, Energy & Transportation.

Reconciliation of Consolidated profit before taxes:



Reconciliation of Consolidated profit before taxes:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products			Consolidated Total
Three Months Ended March 31, 2018
Total profit from reportable segments	$	2,369		$	141		$	2,510
All Other operating segments	57			—			57
Cost centers	27			—			27
Corporate costs	(168		)	—			(168		)
Timing	(84		)	—			(84		)
Restructuring costs	(69		)	—			(69		)
Methodology differences:
Inventory/cost of sales	(8		)	—			(8		)
Postretirement benefit expense	87			—			87
Stock-based compensation expense	(48		)	(2		)	(50		)
Financing costs	(78		)	—			(78		)
Currency	3			—			3
Other income/expense methodology differences	(78		)	—			(78		)
Other methodology differences	(13		)	(2		)	(15		)
Total consolidated profit before taxes	$	1,997		$	137		$	2,134

Three Months Ended March 31, 2017
Total profit from reportable segments	$	1,339		$	183		$	1,522
All Other operating segments	(14		)	—			(14		)
Cost centers	7			—			7
Corporate costs	(115		)	—			(115		)
Timing	(38		)	—			(38		)
Restructuring costs	(751		)	(1		)	(752		)
Methodology differences:							—
Inventory/cost of sales	(68		)	—			(68		)
Postretirement benefit expense	47			—			47
Stock-based compensation expense	(47		)	(2		)	(49		)
Financing costs	(130		)	—			(130		)
Currency	(39		)	—			(39		)
Other income/expense methodology differences	(55		)	—			(55		)
Other methodology differences	(31		)	4			(27		)
Total consolidated profit before taxes	$	105		$	184		$	289

Reconciliation of Restructuring costs:

As noted above, restructuring costs are a reconciling item between Segment profit and Consolidated profit before taxes. Had we included the amounts in the segments' results, the profit would have been as shown below:



Reconciliation of Restructuring costs:
(Millions of dollars)	Segment profit (loss)			Restructuring costs			Segment profit (loss) with restructuring costs
Three Months Ended March 31, 2018
Construction Industries	$	1,117		$	(14	)	$	1,103
Resource Industries	378			(44		)	334
Energy & Transportation	874			(5		)	869
Financial Products Segment	141			—			141
All Other operating segments	57			(4		)	53
Total	$	2,567		$	(67	)	$	2,500

Three Months Ended March 31, 2017
Construction Industries	$	634		$	(667	)	$	(33	)
Resource Industries	160			(59		)	101
Energy & Transportation	545			(14		)	531
Financial Products Segment	183			(1		)	182
All Other operating segments	(14		)	(6		)	(20		)
Total	$	1,508		$	(747	)	$	761

Reconciliation of Assets:



Reconciliation of Assets:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products			Consolidating Adjustments			Consolidated Total
March 31, 2018
Total assets from reportable segments	$	19,252		$	35,332		$	—		$	54,584
All Other operating segments	1,342			—			—			1,342
Items not included in segment assets:
Cash and short-term investments	7,034			—			—			7,034
Intercompany receivables	1,630			—			(1,630		)	—
Investment in Financial Products	4,225			—			(4,225		)	—
Deferred income taxes	2,116			—			(537		)	1,579
Goodwill and intangible assets	4,572			—			—			4,572
Property, plant and equipment – net and other assets	2,261			—			—			2,261
Operating lease methodology difference	(174		)	—			—			(174		)
Inventory methodology differences	(2,214		)	—			—			(2,214		)
Liabilities included in segment assets	9,657			—			—			9,657
Other	(589		)	(8		)	(30		)	(627		)
Total assets	$	49,112		$	35,324		$	(6,422	)	$	78,014

December 31, 2017
Total assets from reportable segments	$	18,805		$	34,893		$	—		$	53,698
All Other operating segments	1,312			—			—			1,312
Items not included in segment assets:
Cash and short-term investments	7,381			—			—			7,381
Intercompany receivables	1,733			—			(1,733		)	—
Investment in Financial Products	4,064			—			(4,064		)	—
Deferred income taxes	2,166			—			(574		)	1,592
Goodwill and intangible assets	4,210			—			—			4,210
Property, plant and equipment – net and other assets	2,341			—			—			2,341
Operating lease methodology difference	(191		)	—			—			(191		)
Inventory methodology differences	(2,287		)	—			—			(2,287		)
Liabilities included in segment assets	9,352			—			—			9,352
Other	(399		)	(14		)	(33		)	(446		)
Total assets	$	48,487		$	34,879		$	(6,404	)	$	76,962

Reconciliation of Depreciation and amortization:



Reconciliations of Depreciation and amortization:
(Millions of dollars)	Machinery, Energy & Transportation		Financial Products		Consolidated Total
Three Months Ended March 31, 2018
Total depreciation and amortization from reportable segments	$	363	$	203	$	566
Items not included in segment depreciation and amortization:
All Other operating segments	57		—		57
Cost centers	31		—		31
Other	17		10		27
Total depreciation and amortization	$	468	$	213	$	681

Three Months Ended March 31, 2017
Total depreciation and amortization from reportable segments	$	387	$	208	$	595
Items not included in segment depreciation and amortization:
All Other operating segments	54		—		54
Cost centers	35		—		35
Other	15		11		26
Total depreciation and amortization	$	491	$	219	$	710

Reconciliation of Capital expenditures:



Reconciliations of Capital expenditures:
(Millions of dollars)	Machinery, Energy & Transportation			Financial Products		Consolidating Adjustments			Consolidated Total
Three Months Ended March 31, 2018
Total capital expenditures from reportable segments	$	227		$	361	$	—		$	588
Items not included in segment capital expenditures:
All Other operating segments	11			—		—			11
Cost centers	14			—		—			14
Timing	175			—		—			175
Other	(104		)	77		(4		)	(31		)
Total capital expenditures	$	323		$	438	$	(4	)	$	757

Three Months Ended March 31, 2017
Total capital expenditures from reportable segments	$	158		$	271	$	—		$	429
Items not included in segment capital expenditures:
All Other operating segments	20			—		—			20
Cost centers	9			—		—			9
Timing	88			—		—			88
Other	(66		)	32		(3		)	(37		)
Total capital expenditures	$	209		$	303	$	(3	)	$	509